Raymond James Ups AUM Requirement for New RIAs

In an effort to attract higher-level advisers, Raymond James Financial Services’ Investment Advisors Division increased the minimum level of assets under management required for new affiliations with registered investment advisers (RIA).

Effective October 1, the new requirement is $50 million, up from $30 million, the company said. Mike Di Girolamo, senior vice president and managing director of the division, said it benefits both the firm and its affiliates to limit access to advisers “at the top of the profession.”

“We have learned that breakaway advisers want to know who their peers will be and want only to work with those who are at least as successful or more,” said Di Girolamo. “It’s similar to a golf game—you only improve your game by playing with golfers who are at the top of theirs.”     

Advisers who do not meet the minimum asset level might be referred to an existing Raymond James office as an alternative, the company said.

“Our goal is to both keep and expand the relationships we have,” said Di Girolamo. “We know several advisers maintain more than one custodial affiliation—so by encouraging those below the minimum to increase their asset levels, we hope Raymond James becomes their primary custodian.”  

As an incentive, the firm re-introduced its Asset Builder Program, which will run for six months from October 15. Raymond James will absorb the transaction charges for the first three months or 30 trades (whichever comes first) of new accounts greater than $250,000. The promotion also absorbs up to $100 of transfer fees on new accounts valued at $500,000 and higher.